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MOUSHUMI BHATTACHARYA
Nillesh Parrekh @ Nilesh Parekh – Appellant
Versus
Reserve Bank of India – Respondent
JUDGMENT :
Moushumi Bhattacharya, J.
1. The petitioner has filed writ petition WPO 2768 of 2022 on 28.9.2022 and WPO 772 of 2023 on 29.3.2023. The first petition was filed challenging a show-cause notice issued by the respondent Union Bank of India on 27.6.2022 and an order passed by the Identification Committee of the said Bank on 8.9.2022. The second writ petition was filed thereafter challenging an order dated 28.2.2023 of the Review Committee of the Bank. Since the basis of challenge to the show-cause notice as well as the two orders are factually similar, both the writ petitions are being disposed of by this judgment.
2. Learned counsel for the petitioner submits that the impugned order of the Identification Committee dated 8.9.2022 was passed in violation of the principles of natural justice. Counsel submits that the Bank proceeded to pass the impugned order without furnishing copies of the documents referred to in the show-cause notice to the petitioner. Counsel submits that since the order of the Identification Committee dated 8.9.2022 is vitiated, the order passed by the Review Committee thereafter on 28.2.2023 should also be quashed and set aside.
3. Learned counsel appearing
Debt Recovery and Monetary Laws - Bank - Loan - Notice - Order of Identification Committee and Review Committee - Challenged - Prior to Identification Committee taking a fresh decision, Bank will add....
Procedural fairness and adherence to natural justice are crucial when classifying individuals as wilful defaulters under banking regulations.
Clear procedural requirements for declaring a borrower as a wilful defaulter must be adhered to, ensuring natural justice principles are upheld.
The main legal point established in the judgment is that decisions of administrative bodies must be reasoned and must provide a fair opportunity for the affected parties to be heard, in accordance wi....
The main legal point established in the judgment is the requirement for reasoned orders and adherence to natural justice principles in the identification of wilful defaulters under the Master Circula....
The court granted the appellants liberty to file a detailed representation before the Review Committee under the RBI Master Circular and directed that the Review Committee's order shall not be given ....
The court clarified the applicability of RBI guidelines in the context of ongoing CIRP and upheld the validity of the impugned Show-Cause Notice, emphasizing compliance with the RBI guidelines.
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